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Pricing-to-market in a Ricardian Model of International Trade

Pricing-to-market in a Ricardian Model of International Trade
Author: Andrew Atkeson
Publisher:
Total Pages: 14
Release: 2007
Genre: International trade
ISBN:

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We study the implications for international relative prices of a simple Ricardian model of international trade with imperfect competition and variable markups, providing a tractable account of firm-level and aggregate prices. We show that both trade costs and imperfect competition with variable markups are needed to account for pricing-to-market at the firm and aggregate levels. We also show that international trade costs are essential, but pricing-to-market is not, to account for a high volatility of tradeable consumer prices relative to the overall CPI-based real-exchange rate.


Lecture Notes In International Trade: An Undergraduate Course

Lecture Notes In International Trade: An Undergraduate Course
Author: Priyaranjan Jha
Publisher: World Scientific
Total Pages: 161
Release: 2020-09-21
Genre: Business & Economics
ISBN: 9811220859

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This book provides a comprehensive discussion of the economics of International Trade.Key questions related to why countries trade, how they gain from trade, and how international trade can produce winners and losers are answered. The last of these questions is related to the connection of trade to inequality in the distribution of income.The book uses both theoretical models and empirical evidence to answer these questions. It also provides a discussion of the economics of labor migration and international capital mobility. The book also provides a detailed discussion of the welfare implications of various trade policy instruments such as tariffs, quotas, export subsidies etc. This is followed by a discussion of the process of actual policymaking in democratic societies which goes into the realm of political economy. The focus here is on the political economy of trade policy. It also provides a discussion of the economics of preferential trading agreements and a history of multilateral trading agreements under the aegis of GATT (General Agreement on Tariffs and Trade) and its evolution into the World Trade Organization (WTO).


International Trade in Manufactured Products

International Trade in Manufactured Products
Author: Ehsan U. Choudhri
Publisher: International Monetary Fund
Total Pages: 34
Release: 2001-03
Genre: Business & Economics
ISBN:

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A large data set on trade in manufactured products is used to evaluate the performance of a model that combines both the Ricardian and Heckscher-Ohlin effects and incorporates monopolistic competition. The paper estimates a relation implied by the model to explain relative sectoral exports of major countries to a number of important markets, using 1970-90 data for nine manufacturing sectors. The relation fits the data well and variables suggested by both traditional and new trade models play an important role in explaining relative exports.


200 Years of Ricardian Trade Theory

200 Years of Ricardian Trade Theory
Author: Ronald W. Jones
Publisher: Springer
Total Pages: 273
Release: 2017-11-30
Genre: Business & Economics
ISBN: 3319606069

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This book offers a comprehensive and insightful reflection on David Ricardo’s ingenious theory of international trade. Divided into three parts, Part I presents the “birthday boy”, his concept and the many applications and insights that have been derived from it, particularly in modern times. Part II explores in depth important aspects of the Ricardian trade theory through the eyes and experience of leading experts on international trade theory, taking into account the latest research in the field. Lastly, Part III discusses current challenges of globalization in the light of Ricardian trade theory and includes the original "On Foreign Trade" written and published by David Ricardo in 1817.


A Theory of International Trade Under Uncertainty

A Theory of International Trade Under Uncertainty
Author: Elhanan Helpman
Publisher: Academic Press
Total Pages: 203
Release: 2014-05-10
Genre: Political Science
ISBN: 148327151X

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A Theory of International Trade Under Uncertainty analyzes international trade in goods and securities in the presence of uncertainty using an integrated general equilibrium framework that recognizes the dependence of markets for goods on financial markets and vice versa. The usefulness of this approach is demonstrated by means of applications to questions such as the effects of international trade on resource allocation, tariff policy, and intervention in financial capital markets. Results which are important for theoretical as well as policy oriented applications are presented. Comprised of 11 chapters, this volume begins with an introduction to some of the fundamental elements of the deterministic Ricardian and Heckscher-Ohlin theories of international trade. Relevant elements from the theory of decision making under uncertainty are then discussed, along with the behavior of firms and consumers-investors in an economy with stock markets. Subsequent chapters focus on problems of commercial policy; gains from trade in goods and securities; and issues of intervention in financial capital markets. The book concludes by describing a dynamic model of international trade that contains an infinite horizon and takes into account the trade-off between present period consumption and savings. An example that illustrates an equilibrium structure of the dynamic model is presented. This monograph is intended for economists who are interested in international trade or international finance, including graduate students who specialize in these fields.


World Trade and Payments

World Trade and Payments
Author: Richard E. Caves
Publisher: Boston : Little, Brown
Total Pages: 600
Release: 1973
Genre: Balance of payments
ISBN:

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The Princeton Encyclopedia of the World Economy. (Two volume set)

The Princeton Encyclopedia of the World Economy. (Two volume set)
Author: Kenneth A. Reinert
Publisher: Princeton University Press
Total Pages: 1329
Release: 2010-08-02
Genre: Political Science
ISBN: 1400830400

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An essential reference to all facets of the world economy Increasing economic globalization has made understanding the world economy more important than ever. From trade agreements to offshore outsourcing to foreign aid, this two-volume encyclopedia explains the key elements of the world economy and provides a first step to further research for students and scholars in public policy, international studies, business, and the broader social sciences, as well as for economic policy professionals. Written by an international team of contributors, this comprehensive reference includes more than 300 up-to-date entries covering a wide range of topics in international trade, finance, production, and economic development. These topics include concepts and principles, models and theory, institutions and agreements, policies and instruments, analysis and tools, and sectors and special issues. Each entry includes cross-references and a list of sources for further reading and research. Complete with an index and a table of contents that groups entries by topic, The Princeton Encyclopedia of the World Economy is an essential resource for anyone who needs to better understand the global economy. More than 300 alphabetically arranged articles on topics in international trade, finance, production, and economic development International team of contributors Annotated list of further reading with each article Topical list of entries Full index and cross-references Entry categories and sample topics: Concepts and principles: globalization, anti-globalization, fair trade, foreign direct investment, international migration, economic development, multinational enterprises Models and theory: Heckscher-Ohlin model, internalization theory, New Trade Theory, North-South trade, Triffin dilemma Institutions and agreements: European Union, International Monetary Fund, World Trade Organization, World Bank, Doha Round, international investment agreements Policies and instruments: dollar standard, international aid, sanctions, tariffs Analysis and tools: exchange rate forecasting, effective protection, monetary policy rules Sectors and special issues: child labor, corporate governance, the digital divide, health and globalization, illegal drugs trade, petroleum, steel


Teams of rivals : endogenous markups in a Ricardian world

Teams of rivals : endogenous markups in a Ricardian world
Author: Beatriz de Blas
Publisher:
Total Pages: 45
Release: 2010
Genre: Economics
ISBN:

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We show that an ostensibly disparate set of stylized facts regarding firm pricing behavior can arise in a Ricardian model with Bertrand competition. Generalizing the Bernard, Eaton, Jenson, and Kortum (2003) model allows firms' markups over marginal cost to fall under trade liberalization, but increase with FDI, matching empirical studies in international trade, generate the existence of pricing-to-market and imperfect pass-through, and capture stylized facts regarding the frequency and synchronization of price adjustment across markets. The result is a well specified distribution for markups that previously could only be seen numerically and a way to quantify endogenous pricing rigidities emerging from a market structure governed by fierce competition among rivals.


International Trade

International Trade
Author: Paul R. Krugman
Publisher: Pearson
Total Pages: 361
Release: 2015-06-15
Genre: Political Science
ISBN: 0133425924

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For courses in International Trade A balanced approach to theory and policy applications International Trade: Theory and Policy provides engaging, balanced coverage of the key concepts and practical applications of the discipline. An intuitive introduction to international trade theory is followed by detailed coverage of policy applications. With this new tenth edition, the author team of Nobel Prize-winning economist Paul Krugman, renowned researcher Maurice Obstfeld, and Marc Melitz of Harvard University continues to set the standard for International Trade courses. This program provides a better teaching and learning experience–for you and your students. It will help you to: • Personalize learning with MyEconLab: This online homework, tutorial, and assessment program fosters learning and provides tools that help instructors to keep students on track. • Reveal theory and applications of international trade: Balanced coverage of theory and applications aids student retention and highlights the relevance of course material. • Give students learning tools to master course material: Numerous in-text learning resources engage students and encourage further exploration of course topics. • Provide the most updated coverage: Thoroughly updated content ensures that students are up to date on key issues. Note: If you are purchasing the standalone text or electronic version, MyEconLab does not come automatically packaged with the text. To purchase MyEconLab please visit www.myeconlab.com or you can purchase a package of the physical text + MyEconLab by searching for 0133827046 / 9780133827040. MyEconLab is not a self-paced technology and should only be purchased when required by an instructor.


Handbook of International Trade

Handbook of International Trade
Author: Evelyn Stewart
Publisher: Murphy & Moore Publishing
Total Pages: 242
Release: 2021-11-16
Genre: Business & Economics
ISBN: 9781639872855

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The exchange of goods, capital and services across international borders is termed as international or global trade. It is a complex process that occurs between a minimum of two countries. A wide variety of factors such as government, currency, trade policies, economy, judiciary, laws and market regulations have a considerable influence on international trade. Products sold by a country are termed as its exports. International trade opens up horizons for consumers and nations with exposure to unknown markets and products. Some of the common commodities of international trade are oil, food, clothes jewelry, spare parts and currencies. Various theories and models are utilized for the analysis of international trade. A few of them are the Heckscher-Ohlin model, specific factors model, Ricardian model and Adam Smith's model. The topics included in this book on international trade are of utmost significance and bound to provide incredible insights to readers. Some of the diverse topics covered herein address the varied branches that fall under this category. Those with an interest in the international trade field would find this book helpful.